A Study On The Development Of Rosca

ROSCA(Rotating Saving and Credit Association) is a rather peculiar form of financial mutual-aid organization and has more than a thousand years of development history in China. The co-existence and development of ROSCA can make up for insufficient supply of formal financial to some extent, play important role in promoting rural economic development and alleviating the financing difficulties of SMEs. Therefore, in the new historical period, we should form correct understanding in the co-existence&development and value of ROSCA, inherit its rational kernel, guide and regulate its development actively, provide reference for healthy development of other formsfinancial organizations.This paper adopts the historical, empirical, comparative and other research approach, introduces and researches the development change process of ROSCA (Rotating Saving and Credit Association) basing on the perspective of institutional change. According to the evolution of content, the development process of ROSCA will be divided into traditional part and contemporary part by taking Reform and opening up as the historical division.This paper deems that the reasons for the co-existence and development change of traditional ROSCA consist of internal demand of natural economic system,survival needs of farmers,the shackles of traditional morality ethics and government regulation according to sorting out and analyzing the historical change process of traditional ROSCA.Then, by analysis of the practical experience of the development of ROSCA in developed countries and regions and combining our country's actual situation, this paper proposes that future development of our ROSCA will be more complex and diverse trends. Finally, given the diversity of the co-existence form and development trends of ROSCA and based on summarizing the characteristic of the ROSCA's development change track, this paper puts forward that the government should change their concepts,guide and regulate different forms of ROSCA in strengthen from the legislative and regulatory aspects to promote its healthy development.